Originally Posted by
bubba198
Read again. That's US Air proposal. American wants as much as 80% and various assurances regarding US Air's contract problems.
Yep, Horton and the UCC generally think that AMR's creditors deserve more than 70% of the equity.
Hypothetically, if AMR might be worth $8 billion on its own as it emerges from Ch 11, and US is currently worth $2 billion, then US shareholders should get no more than 20% of the equity.
Originally Posted by WSJ article
While not spending too much time on specific figures, Mr. Horton made it clear that American, the No. 3 U.S. airline by traffic, expects its creditors to receive more than 70% of the shares of a combined airline, the people said. US Airways lately had roughly 70% in mind for American creditors after previously viewing the equity split as a more even one, some of the people said.